Instructions For Schedule C - Profit Or Loss From Business

Department of the Treasury

Internal Revenue Service

2017 Instructions for Schedule C

Profit or Loss

Use Schedule C (Form 1040) to report income or (loss) from a business you operated

or a profession you practiced as a sole proprietor. An activity qualifies as a business if

From Business

your primary purpose for engaging in the activity is for income or profit and you are

involved in the activity with continuity and regularity. For example, a sporadic activity

or a hobby does not qualify as a business. To report income from a nonbusiness activi-

ty, see the instructions for Form 1040, line 21, or Form 1040NR, line 21.

Also use Schedule C to report (a) wages and expenses you had as a statutory em-

ployee, (b) income and deductions of certain qualified joint ventures, and (c) certain

income shown on Form 1099-MISC, Miscellaneous Income. See the Instructions for

Recipient (back of Copy B of Form 1099-MISC) for the types of income to report on

Schedule C.

Small businesses and statutory employees with business expenses of $5,000 or less

may be able to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for de-

tails.

You may be subject to state and local taxes and other requirements such as business

licenses and fees. Check with your state and local governments for more information.

Section references are to the Internal

(loss) that is not subject to

Reminders

Revenue Code unless otherwise noted.

self-employment tax.

Schedule F (Form 1040) to report

Small Business and Self-Employed

Future Developments

profit or (loss) from farming.

(SB/SE) Tax Center. Do you need help

Schedule J (Form 1040) to figure

with a tax issue or preparing your return,

For the latest information about devel-

your tax by averaging your farming or

or do you need a free publication or

opments related to Schedule C and its

fishing income over the previous 3

form? SB/SE serves taxpayers who file

instructions, such as legislation enacted

years. Doing so may reduce your tax.

Form 1040, Schedules C, E, F, or Form

after they were published, go to

IRS.gov/

Schedule SE (Form 1040) to pay

2106, as well as small business taxpay-

ScheduleC.

self-employment tax on income from

ers with assets under $10 million. For

What's New

any trade or business.

additional information, visit the Small

Form 3800 to claim any of the

Business and Self-Employed Tax Center

general business credits.

Disaster tax relief. Disaster tax relief

at IRS.gov/SmallBiz.

Form 4562 to claim depreciation

was enacted for those impacted by cer-

Sharing Economy Tax Center. The

(including the special allowance) on

tain Presidentially declared disasters, in-

sharing (or on-demand, gig, or access)

assets placed in service in 2017, to claim

cluding an employee retention tax credit.

economy refers to an emerging area of

amortization that began in 2017, to

See Pub. 976, Disaster Relief, for more

activity that involves people using tech-

make an election under section 179 to

information.

nology advancements to arrange transac-

expense certain property, or to report

Expired employment credits. At the

tions that generate revenue from sharing

information on listed property.

time these instructions went to print, the

assets or providing services upon re-

Form 4684 to report a casualty or

empowerment zone employment credit

quest. Visit

IRS.gov/Sharing

to get more

theft gain or (loss) involving property

and the Indian employment credit had

information about the tax consequences

used in your trade or business or

expired. If extended for 2017, claiming

of participating in the sharing economy.

income-producing property.

these credits could affect the amount

Form 4797 to report sales,

General

you can deduct on line 26. To find out if

exchanges, and involuntary conversions

legislation extended these credits, go to

Instructions

(not from a casualty or theft) of trade or

IRS.gov/Extenders.

business property.

Standard mileage rate. The business

Other Schedules and Forms

Form 6198 to figure your

standard mileage rate for 2017 is re-

allowable loss if you have a business

You May Have To File

duced to 53.5 cents per mile.

loss and you have amounts invested in

Schedule A (Form 1040) to deduct

Principal business activity codes. The

the business for which you are not at

interest, taxes, and casualty losses not

principal business activity codes at the

risk.

related to your business.

end of these instructions have been re-

Form 8582 to figure your

Schedule E (Form 1040) to report

vised.

allowable loss from passive activities.

rental real estate and royalty income or

C-1

Jan 11, 2018

Cat. No. 24329W

Instructions For Schedule C - Profit Or Loss From Business - 2017

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